Economics of Enterprise Answers

How does market competition ensure that a firm is making the products that consumers value the most?

A classmate of yours tells you that, the combination of inflation and a progressive income tax system tend to redistribute income in the country.

Why competition is a result in scarcity?

The economy goes from point A to point B on the PPF. What is the gain in cameras?

For this project, consider what you desire to accomplish after high school. What career or area of study interests you? Do you want to relocate? Visualize what your life will look like in the next five years.

if the price of goods X falls from 55.00 to 54.60 and the demand increases from 1700 units to 2000 units , what would be the price elasticity of demand ?

Qd=200-1/2×4910+1/4×5900-5×90+1/5×55000

11. Suppose the information about labors. The product price is $10 per unit.

Wage rate 30 60 90 120 150 180 210 240
Units of labor 0 1 2 3 4 5 6 7
Total Product 0 17 31 43 53 60 65 68

a. Draw the firm’s labour supply and marginal resource cost curves. Are the curves the same or different? If they are different, which one is higher? b. On the same graph, plot the labour demand data of derived from the table above. What are the equilibrium wage rate and level of employment? c. Compare these answers with those you found in problem 10. By how much does this firm reduce wages below the competitive wage? By how much does this firm reduce employment below the competitive level?

13. Graphically explain each of the following cases that (1) a typical monopoly firm is making a positive economic profit (2) a typical monopoly firm is making a zero economic profit (3) a typical monopoly firm is making a negative economic profit

Suppose the information about labors. The product price is $10 per unit and wage rate is $60 per labor unit.

Units of labor 0 1 2 3 4 5 6 7
Total Product 0 17 31 43 53 60 65 68

a. Derive the schedules for labor demand and real labor demand from the information above. Graphically show both. b. Show graphically the labour supply and marginal factor (labour) cost curves for this firm. Are the curves the same or different? If they are different, which one is higher? c. Plot the labour demand data on the graph derived in (b). What are the equilibrium wage rate and level of employment?